The present invention relates generally to financial transaction systems and methodologies, and in particular to methods and systems for making payments based on a customer identification.
A wide variety of payment methods are available to consumers of goods and services. In addition to currency, consumers are often able to use their credit in making purchases. A common system for making credit purchases involves the use of a credit card provided by a credit card issuer, such as a commercial bank or other financial institution. Non-credit transactions can be handled by debit cards, which utilize funds already deposited by the consumer for payment purposes.
Many types of payment methodologies are dependent upon customers having relationships with financial institutions such as banks, credit unions, etc. However, a substantial percentage of consumers do not use such conventional financial institutions. These consumers are often referred to as “unbanked” because they do not maintain accounts with such institutions. Unbanked consumers are often inconvenienced in making financial transactions. For example, without bank accounts, they experience difficulty and inconvenience in obtaining negotiable instruments, making purchases on credit, etc.
Recently there have been a number of new products which provide at least partial solutions to the problems of the unbanked and other consumers. For example, “prepay” cards allow consumers to pre-purchase various goods and services. An example of prepaid cards relates to the use of telecommunications services, which are available through prepaid “calling cards”. Many consumers prepay their calling cards on a monthly basis in order to obtain “dial tone” service. As with calling cards, other prepaid cards are also reloadable whereby additional value can be added to the prepaid cards by consumers allowing consumers to use their cards indefinitely.
Another prior art payment system involves the use of payment service providers making payments on behalf of consumers over the Internet global computer network or by negotiable instrument. Such a payment service is available from Western Union Commercial Services under its trademark QUICK COLLECT. This product allows consumers to make payments to Western Union agents who then transfer funds either over the Internet global computer network or by issuing negotiable instruments to the payees on behalf of the customers/payors. The customers submit certain identifying information each time they use this service.
In one aspect, the present invention addresses the need for a payment service method and system which allow customers to gain access to the service simply by providing an identifier. For example, the payment service provider can issue the customers cards adapted for swiping to input their identifiers. A payment service is also needed which substantially instantaneously credits payments to accounts as directed by the customer. For example, customers who purchase prepaid dial tone telecommunications services often intend to use such services immediately.
In another aspect, there is also a need for a payment service provider to retain customer information to facilitate making a payment by simply swiping a card to input the customer's ID and designating a payment amount. Enrolled customers can thus remain in the system's database indefinitely for use of the payment service on demand.